9. PROJECT MANAGEMENT GOVERNANCE POLICY Redacted
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9. PROJECT MANAGEMENT GOVERNANCE POLICY Redacted

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ITEM: 9
 PAGE: 1

REPORT TO: POLICY & RESOURCES COMMITTEE ON 7 JUNE 2016
SUBJECT: PROJECT MANAGEMENT GOVERNANCE POLICY
BY: CHIEF EXECUTIVE
1. REASON FOR REPORT

1.1 This report presents the Council’s new approach to project management and

associated administration. It describes the proposed corporate approach to
project management governance and provides assurance to Elected Members
that processes and controls are in place to ensure successful project delivery
within the Council.

1.2 This report is submitted to Committee in terms of Section III A (2) and (42) of the
Council's Scheme of Administration relating to managing the finances of the
Council and the organisation and management processes of the Council.

2. RECOMMENDATIONS

2.1 It is recommended that the Committee approves the:

(i) implementation of a corporate Project Management Governance Policy
for managing projects; and

(ii) funding of £35,000 from Reserves for training as detailed in paragraph
7.3 of the report.

3. BACKGROUND
3.1 On 25 May 2016, Full Council approved the establishment of a small dedicated

Programme Management Office (PMO) team to support and administer
appropriate projects and programmes (paragraph 7 of the draft minute refers).
The report also referred to an associated draft policy to ensure there are
consistent standards and disciplines applied to all projects and programmes.

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4. THE PROJECT MANAGEMENT GOVERNANCE POLICY

4.1 A key responsibility of the PMO is the ownership and administration of the
corporate Project Management Governance Policy (The Policy). A copy of The
Policy is attached at Appendix 1. The Policy provides a framework for
accountability and responsibilities, ensuring that project decision making is robust,
logical and that projects provide value to the organisation. It offers a mechanism
for ensuring that accurate and appropriate project status reports are presented
regardless of the Service running the project or the type of project.

5. RESPONSIBILITIES
5.1 A core principle that applies for all projects, irrespective of the delivery

methodology and terminology used, is that of accountability and responsibility.
The point of accountability for a project is the Director of the Service that is leading
on the project. Responsibility for ensuring that the project runs in compliance with
corporate policy sits with the Project Sponsor (also referred to Senior Responsible
Officer (SRO)). For construction projects, this role is sometimes known as the
Project Owner - but the responsibilities are the same. It is acceptable for the
Director to also have the role of Project Sponsor. The PMO will support all
accountable and responsible officers.

5.2 The governance hierarchy, as shown in the diagram below, outlines the flow of

reporting and decision making. The PMO will support this process. The hierarchy
is based on existing high-level governance arrangements as there seems to be
little benefit in creating a new structure. Instead, the roles of the various bodies
will be defined more clearly. The exception is the Transformation Programme
Board which replaces the defunct DBS Programme Board.

5.3 Each programme will comprise of component projects. Each project will have a

Project Board. The Project Sponsor/SRO is responsible for setting up and
chairing the Project. The Project Sponsor/SRO must ensure that all the
responsibilities assigned to the Project Board are met. Whilst these
responsibilities may be devolved to the Project Manager, accountability remains
with the Project Sponsor/SRO. The resource, grade and knowledge associated
with each role will vary depending on the project. The corporate PMO will support
all roles.

5.4 The Project Board will provide assurance to the relevant higher level Programme

Board that appropriate risk mitigation plans are in place for all project risks,
regularly monitor the viability of the mitigation and report any exceptions. The
PMO will facilitate this process.

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6. PROCESS
6.1 A critical element of The Policy is the Gateway Process. Abbreviated Gateway

formats are already used by ICT, Procurement and the Asset Management Group.
The process is built on the following elements:

i. Key Principles - the basic rules that affect all projects during the project life
cycle. The 6 major stages of a project lifecycle – Conception, Definition,
Initiation & Planning, Delivery, Closure and Post Project Review.

ii. Structure, Accountability and Responsibilities - who does what and what
role they play in project governance.

iii. Governance process (Gateways) - defines the trigger points for mandatory
governance checks on project status and the evidence required for
governance approvals.

iv. Project Reporting and Standard Processes – defines the reporting
requirements and the acceptable way of working within the governance
framework.

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v. Prioritisation - doing the right projects recognising the organisation’s
capacity constraints to undertake the work.

vi. Capability - It creates the environment to do the selected projects and
programmes right and the development and maintenance of an effective
capability.

vii. Continuous Improvement - to validate the usefulness and efficiency of the
ongoing work which feeds back into the selection and capability aspects of
governance.

6.2 Although the key principles are seen as best practice for all projects, in order to

not stifle through bureaucracy the process will apply specifically and will be
enforced for:

 Requires significant capital or revenue investments – significant investment
means having a value of £1M or more over the lifecycle of the project; or

 Projects whose implementation exhibits a high level of complexity,
ambiguity, tension, uncertainty or risk as identified during categorisation in
accordance with Appendix 4; or

 Projects that are forecast to deliver substantial cost savings as identified by
the Council’s Corporate Management Team (CMT).

6.3 All projects are categorised as Basic, Intermediate or Strategic. The category
determines the process, governance and reporting requirements. The criteria to
be considered for categorisation are Corporate Impact (including £ value) and
Complexity. Projects will be rated against each factor using a low/medium/high
rating.

6.4 The information required for each stage of the process is determined by the

category of the project. The table below outlines the documentation required at
each gateway for intermediate and strategic projects.

Concept………………………...”Project Life Cycle”………………….Closure

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PAGE: 5

6.5 For clarity and to help understanding, definitions of a project, programme and
programme management are detailed below (APM Body of Knowledge, 6 th
Edition):

 A Project is a unique, transient endeavour, undertaken to achieve planned
objectives, which could be defined in terms of outputs, outcomes, benefits or
strategic objectives.

o Outputs - are the tangible or intangible products typically delivered by
the project.

o Outcomes – are the changed circumstances or behaviours that result
from the use of an output

 A Programme is a group of related projects and change management
activities that together achieve beneficial change for an organisation.

 Programme Management is the coordinated management of projects and
change management activities to achieve a beneficial change.

6.6 To further help address any ambiguity defining